Monday, April 28, 2025

EU Takes Aim at Big Tech Again — Google and Apple Ordered to Comply

On Wednesday, the European Commission took action against major U.S. technology companies.

The EU ruled that Google had violated the Digital Markets Act (DMA), Europe’s digital competition law, and issued a compliance order to Apple to adhere to the DMA.

During his first term, Donald Trump viewed Europe’s pressure on U.S. tech firms as challenging and responded with tariffs, yet the EU has resumed its regulatory crackdown on Big Tech.

The European Commission announced that Alphabet, Google’s parent company, had violated the EU’s DMA, a law aimed at curbing the influence of U.S. Big Tech in the European digital marketplace.

The Commission stated that Alphabet had breached this law through its Google Search and Google Play services.

The EU criticized Google Search for favoring its services over competitors’ offerings, a practice known as self-preferencing, which is explicitly prohibited under the DMA.

Furthermore, the EU determined that Google Play, the company’s mobile application store, had infringed upon app developers’ rights by not allowing users to make payments through alternative channels.

In response to the EU’s sanctions, Google argued that European consumers and businesses would ultimately bear the costs, claiming it had already adjusted its practices to comply with the DMA.

Separately, the EU also pressured Apple to comply with the DMA.

The Commission issued a corrective order for Apple to overhaul its practices in line with the DMA.

The directive, often called an order to open up the iPhone ecosystem, requires Apple to ensure compatibility across all devices.

With Europe’s regulatory pressure mounting, Trump is expected to retaliate with tariffs.

In February, Trump declared a tariff war against Europe, arguing that U.S. tech firms were subjected to “overseas extortion” through digital service taxes, fines, and other European policies. He threatened to respond with tariffs.

Hot this week

U.S. Existing Home Sales Hit 16-Year Low as March Transactions Plunge 5.9%

U.S. home sales hit a 16-year low amid economic concerns, with potential declines in housing prices affecting consumer spending.

S&P 500 Soars 2% as Tesla, Nvidia Lead Tech-Stock Surge

New York stocks surged for three days, led by tech giants like Tesla and Nvidia, despite warnings of a potential downturn.

Oil Markets Recover: Brent and WTI Futures Edge Up After 2% Drop

Oil prices recovered despite mixed trade talks between the US and China, with Brent and WTI benchmarks rising after a prior decline.

Bessent Sets Agenda for U.S.–Japan Trade Talks: No Yen Target, Just Tariff Strategy

U.S. Treasury Secretary Bessent outlines trade talks with Japan, focusing on tariffs and trade deficit, avoiding currency targets.

Markets Rebound Strongly on Hopes of U.S.–China ‘Big Deal’ and Tesla Turnaround

The New York stock market rallied for the second day, driven by optimism in U.S.-China trade talks and strong tech stock performances.

Topics

U.S. Existing Home Sales Hit 16-Year Low as March Transactions Plunge 5.9%

U.S. home sales hit a 16-year low amid economic concerns, with potential declines in housing prices affecting consumer spending.

S&P 500 Soars 2% as Tesla, Nvidia Lead Tech-Stock Surge

New York stocks surged for three days, led by tech giants like Tesla and Nvidia, despite warnings of a potential downturn.

Oil Markets Recover: Brent and WTI Futures Edge Up After 2% Drop

Oil prices recovered despite mixed trade talks between the US and China, with Brent and WTI benchmarks rising after a prior decline.

Bessent Sets Agenda for U.S.–Japan Trade Talks: No Yen Target, Just Tariff Strategy

U.S. Treasury Secretary Bessent outlines trade talks with Japan, focusing on tariffs and trade deficit, avoiding currency targets.

Markets Rebound Strongly on Hopes of U.S.–China ‘Big Deal’ and Tesla Turnaround

The New York stock market rallied for the second day, driven by optimism in U.S.-China trade talks and strong tech stock performances.

Oil Prices Fall as OPEC+ Signals June Production Hike

Oil prices fell sharply after a surge due to U.S. sanctions on Iran, as OPEC+ considers increasing production rates in June.

AI Politeness Has a Cost: Saying ‘Thank You’ to AI Adds to Energy and Water Consumption

Users thanking AI may lead to increased energy consumption, as polite interactions raise server loads and electricity costs significantly.

Dow Soars Over 1,000 Points as U.S.-China Trade Hopes Lift Markets

U.S. stock indices surged over 2.5% as optimism grew for a U.S.-China trade deal, while Tesla faced mixed reactions post-earnings.

Related Articles